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State Media, Institutional Environment, and Analyst Forecast Quality: Evidence from China

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  • Yanhui Jiang
  • Yun Hong

Abstract

Analysts’ forecast quality in emerging markets is remarkably low and few influential factors are known. In this study, we use textual analysis to explore the impact of the state’s media – China Central Television (CCTV) – on analysts’ forecast quality. We find that analysts’ earnings forecasts are biased when CCTV news optimistically puts more emphasis on the economy, thus compromising the accuracy of the forecasts. CCTV’s impact is enormous in state-owned brokers and firms and firms facing less marketization. Investors can use CCTV’s impact on the analysts to act cautiously.

Suggested Citation

  • Yanhui Jiang & Yun Hong, 2021. "State Media, Institutional Environment, and Analyst Forecast Quality: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(14), pages 3929-3943, November.
    • Handle: RePEc:mes:emfitr:v:57:y:2021:i:14:p:3929-3943
    DOI: 10.1080/1540496X.2020.1766443
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    Cited by:

    1. Huan Wang, 2022. "Knowledge or Responsibility? The Role of Media Use on Citizens’ Willingness to Pay for Environment Governance," Sustainability, MDPI, vol. 14(21), pages 1-15, November.
    2. Shiliang Hu & Wenhao Dong & Yongchun Huang, 2023. "Analysts’ Green Coverage and Corporate Green Innovation in China: The Moderating Effect of Corporate Environmental Information Disclosure," Sustainability, MDPI, vol. 15(7), pages 1-22, March.

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